Question 1

If an employee observes management engaging in unethical behavior,the best thing to do FIRST is:

Accepted Answer

A) ensure the facts are correct. 
B) present the facts to the local newspaper. 
C) do nothing and hope the problem resolves itself. 
D) immediately report the incident to a superior. 
A) ensure the facts are correct. 
B) present the facts to the local newspaper. 
C) do nothing and hope the problem resolves itself. 
D) immediately report the incident to a superior.

Question 2

A well-designed management accounting and control system should incorporate the organization's ethical code of conduct.

Accepted Answer

A) True 
 B)False

Question 3

________ refers to the amount of effort the employee expends on a job or specific task.

Accepted Answer

A) Direction 
B) Persistence 
C) Duration 
D) Intensity 
A) Direction 
B) Persistence 
C) Duration 
D) Intensity

Question 4

The organization generates information that helps decision makers assess whether the MACS is achieving its objectives.

Accepted Answer

A) True 
 B)False

Question 5

The scientific school of management recognizes that employees want respect and a feeling that they make an important contribution.

Accepted Answer

A) True 
 B)False

Question 6

According to the hierarchy of ethical principles presented in the text,an action prohibited by ________ should also be unacceptable to ________.

Accepted Answer

A) legal rules, societal norms 
B) personal norms, professional memberships 
C) organizational norms, societal norms 
D) professional memberships,legal rules 
A) legal rules, societal norms 
B) personal norms, professional memberships 
C) organizational norms, societal norms 
D) professional memberships,legal rules

Question 7

Assumptions of the human resources model of motivation include all of the following EXCEPT:

Accepted Answer

A) employees prefer to follow highly-detailed, prescribed procedures. 
B) individuals are motivated by both financial and nonfinancial awards. 
C) employees are knowledgeable about their jobs. 
D) individuals are highly creative,ethical,and responsible. 
A) employees prefer to follow highly-detailed, prescribed procedures. 
B) individuals are motivated by both financial and nonfinancial awards. 
C) employees are knowledgeable about their jobs. 
D) individuals are highly creative,ethical,and responsible.

Question 8

Stock option plans provide incentive compensation to the participants when the stock price falls.

Accepted Answer

A) True 
 B)False

Question 9

The term control in management accounting and control refers to the set of procedures,tools,performance measures,systems,and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.

Accepted Answer

A) True 
 B)False

Question 10

An interactive control system should be used to achieve goal congruence when:

Accepted Answer

A) human behavior needs to be controlled. 
B) there is a large degree of strategic uncertainty. 
C) systems are allowed to run in a routine fashion. 
D) the behavior of employees needs to be inspected while they are performing a task. 
A) human behavior needs to be controlled. 
B) there is a large degree of strategic uncertainty. 
C) systems are allowed to run in a routine fashion. 
D) the behavior of employees needs to be inspected while they are performing a task.

Question 11

Monitoring focuses on measuring employee performance against stated objectives.

Accepted Answer

A) True 
 B)False

Question 12

In compensation plans,profit sharing:

Accepted Answer

A) is a group incentive compensation plan. 
B) is focused on projected long-term performance. 
C) must distribute an equal share of the profits to each employee. 
D) All of the above are correct. 
A) is a group incentive compensation plan. 
B) is focused on projected long-term performance. 
C) must distribute an equal share of the profits to each employee. 
D) All of the above are correct.

Question 13

The key attribute of intrinsic rewards for compensation is that they:

Accepted Answer

A) have a well-defined monetary value. 
B) are provided by one person to another. 
C) are common across individuals in a given situation. 
D) come from inside the individual. 
A) have a well-defined monetary value. 
B) are provided by one person to another. 
C) are common across individuals in a given situation. 
D) come from inside the individual.

Question 14

To the extent that an ethical hierarchy exists,________ have the highest authority.

Accepted Answer

A) societal norms 
B) legal rules 
C) organizational norms 
D) personal norms 
A) societal norms 
B) legal rules 
C) organizational norms 
D) personal norms

Question 15

The contemporary management view of motivation,the ________ is based on initiatives to improve the quality of working life.

Accepted Answer

A) balanced scorecard 
B) human resources model of motivation 
C) scientific management school 
D) results control system 
A) balanced scorecard 
B) human resources model of motivation 
C) scientific management school 
D) results control system

Question 16

The two major categories of technical considerations for a management accounting and control system are:

Accepted Answer

A) design and accuracy of information. 
B) relevance of information and scope of system. 
C) service and timely information. 
D) development and flexibility. 
A) design and accuracy of information. 
B) relevance of information and scope of system. 
C) service and timely information. 
D) development and flexibility.

Question 17

In compensation plans,a stock option is:

Accepted Answer

A) categorized as a long-term motivational device. 
B) usually reserved for employees who affect long-term results. 
C) most effective when the exercise price is more than the market price of the stock at issuance. 
D) All the above are correct. 
A) categorized as a long-term motivational device. 
B) usually reserved for employees who affect long-term results. 
C) most effective when the exercise price is more than the market price of the stock at issuance. 
D) All the above are correct.

Question 18

An incentive-based reward system is only effective if employees understand how to improve their measured performance.

Accepted Answer

A) True 
 B)False

Question 19

The BEST description of participative budgeting is that:

Accepted Answer

A) lower-level managers and employees initially prepare the budget. 
B) managers and employees at many levels are involved with the budgeting process. 
C) the budget is prepared by the top managers. 
D) top management sets figures for all operating activities and these amounts are not negotiable. 
A) lower-level managers and employees initially prepare the budget. 
B) managers and employees at many levels are involved with the budgeting process. 
C) the budget is prepared by the top managers. 
D) top management sets figures for all operating activities and these amounts are not negotiable.

Question 20

Careful attention to motivation is a key step for the organization and its employees to align their respective goals.

Accepted Answer

A) True 
 B)False

If an employee observes management engaging in unethical behavior,the best thing to do FIRST is:

A well-designed management accounting and control system should incorporate the organization's ethical code of conduct.

________ refers to the amount of effort the employee expends on a job or specific task.

The organization generates information that helps decision makers assess whether the MACS is achieving its objectives.

The scientific school of management recognizes that employees want respect and a feeling that they make an important contribution.

According to the hierarchy of ethical principles presented in the text,an action prohibited by should also be unacceptable to .

Assumptions of the human resources model of motivation include all of the following EXCEPT:

Stock option plans provide incentive compensation to the participants when the stock price falls.

The term control in management accounting and control refers to the set of procedures,tools,performance measures,systems,and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.

An interactive control system should be used to achieve goal congruence when:

Monitoring focuses on measuring employee performance against stated objectives.

In compensation plans,profit sharing:

The key attribute of intrinsic rewards for compensation is that they:

To the extent that an ethical hierarchy exists,________ have the highest authority.

The contemporary management view of motivation,the ________ is based on initiatives to improve the quality of working life.

The two major categories of technical considerations for a management accounting and control system are:

In compensation plans,a stock option is:

An incentive-based reward system is only effective if employees understand how to improve their measured performance.

The BEST description of participative budgeting is that:

Careful attention to motivation is a key step for the organization and its employees to align their respective goals.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Using Budgets for Planning and Coordination

Financial Control

Filters

Exam 9: Behavioral and Organizational Issues in Management Accounting and Control Systems

If an employee observes management engaging in unethical behavior,the best thing to do FIRST is:

A well-designed management accounting and control system should incorporate the organization's ethical code of conduct.

________ refers to the amount of effort the employee expends on a job or specific task.

The organization generates information that helps decision makers assess whether the MACS is achieving its objectives.

The scientific school of management recognizes that employees want respect and a feeling that they make an important contribution.

According to the hierarchy of ethical principles presented in the text,an action prohibited by ________ should also be unacceptable to ________.

Assumptions of the human resources model of motivation include all of the following EXCEPT:

Stock option plans provide incentive compensation to the participants when the stock price falls.

The term control in management accounting and control refers to the set of procedures,tools,performance measures,systems,and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.

An interactive control system should be used to achieve goal congruence when:

Monitoring focuses on measuring employee performance against stated objectives.

In compensation plans,profit sharing:

The key attribute of intrinsic rewards for compensation is that they:

To the extent that an ethical hierarchy exists,________ have the highest authority.

The contemporary management view of motivation,the ________ is based on initiatives to improve the quality of working life.

The two major categories of technical considerations for a management accounting and control system are:

In compensation plans,a stock option is:

An incentive-based reward system is only effective if employees understand how to improve their measured performance.

The BEST description of participative budgeting is that:

Careful attention to motivation is a key step for the organization and its employees to align their respective goals.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Using Budgets for Planning and Coordination

Financial Control

Filters

According to the hierarchy of ethical principles presented in the text,an action prohibited by should also be unacceptable to .